Regulatory capture as a barrier to market innovation
The guest argued that regulatory capture systematically protects legacy incumbents at the expense of consumers, startups, and overall economic efficiency.
The argument
Using examples like the three-day clearing time for ACH and the consolidation of the banking sector post-Dodd-Frank, the speaker explained that regulations are frequently co-opted by large corporations to block new entrants. He proposed that increased transparency, such as country-by-country regulatory capture databases, could help drive reform.
Hear it yourself
"This is why ACH takes three days to clear, right? Yes. Yes. Yes. But Stablecoin may solve that. But this professor approached me about making a global database that scores countries on how captured they are."
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